JOSEPH L. ALIOTO Mayor CITY AND COUNTY OF SAN FRANCISCO AIRPORTS COMMISSION William E. McDonnell, President John A. Sutro, Vice President William K. Coblentz Wallace R. Lynn Joseph P. Mazzola STAFF William J. Dwyer, Director of Airports M. F. Bagan, Deputy Director, Operations & Maintenance Thomas F. Bertken, Deputy Director, Planning & Development William V. Paizis, Deputy Director, Business & Administration Richard B. Newport, Commission Secretary AIRPORTS COMMISSION Left to Right: Wallace R. Lynn, Joseph P. Mazzola, William E. McDonnell, President, John A. Sutro, Vice President, and William K. Coblentz. MESSAGE FROM THE PRESIDENT As the fifth busiest Airport in the United States in terms of passenger volume, it was in the best interest of San Francisco to have a separate Airports Com- mission charged solely with governing Airport matters to keep pace with technological advances and dynamic growth of the airlines industry; to pro- vide safe, efficient and suitable airport facilities; and to cope with the increasing passenger, commercial and industrial development of San Francisco and the Bay Area. The San Francisco International Airports Commission was therefore created in September 1970, pursuant to a City Charter Amendment. The City Charter Amendment provided for a governing body of five Commissioners appointed by the Mayor of San Francisco for four year terms. The Commission elects a President and Vice President and appoints the Director of the Airport. During January 1973, James K. Carr, Director of Airports since September 1970, resigned. William J. Dwyer, former Deputy Director of Business at the Airport, was appointed Director of Airports, to succeed Mr. Carr. The appoint- ment of Mr. Dwyer provided the continuity required during a critical period in negotiations with the airlines concerning the further development of the Airport. Mr. Dwyer had been intimately involved in the negotiations prior to his appointment. The Airports Commission is extremely confident that Airports Director Dwyer will provide the expertise required to meet the challenges of the next decade. william e. McDonnell President DIRECTOR'S REPORT 1972-1973 San Francisco International Airport passenger volume reached record high levels for the second consecutive year during 1972-73. This annual record is more significant considering that it was accomplished with fewer scheduled aircraft movements than took place at the Airport during 1969. Since 1968, San Francisco International Airport passenger volume has increased by 2.7 million while scheduled aircraft movements have remained relatively constant. The significant growth this past year in passenger volume, cargo shipments, and total revenues allowed the Airports Commission to maintain fiscal independence for the 17th consecutive year. The Airports Commission kept the cost of operations 11.9% under the authorized budget. The Airport Expansion Program continues to be our major concern. The Airport staff expended considerable time and effort implementing the administrative steps necessary to gain approval for the program. Concurrent with several Expansion Program Environmental Impact Report public hearings during the third and fourth quarters, other administrative documents analogous to the Expansion Program were negotiated and culminated. They included the Airlines Landing Fees Agreement, the United Airlines Maintenance Base Lease, approval of a Master Revenue Bond Resolution for the Airport Expansion Program, and a new schedule of landing fees, rates and charges for airlines operating out of San Francisco. All of the aforementioned documents were of considerable economic importance to the City and Countv. and represent a major step in the process of final approval and the modernization and development of the Airport. Provisions were also made to reimburse the City and County of San Francisco, 24 million dollars advanced to the Airport prior to 1957. Repayment of these funds will be at the rate of $2 million per year. From a personnel standpoint, progress was made on a three year program to bring the Operations and Maintenance Division up to a manning level consistent with the requirements for an Airport preventative maintenance program. The Airport Security Force was expanded to meet new Federal Regulations for screening passengers and operating area security. Construction at the Airport during the fiscal year was brisk. Thirty-nine projects totaling $21.7 million were completed or are now in progress. Major projects included the International Rotunda scheduled to open in the first quarter of 1974, and the foundation for the North Terminal, scheduled for completion in 1975. Tenant improvement construction focused on temporary expansion of boarding areas for Western, TWA, National, Delta, Northwest and PSA to accommodate wide-bodied aircraft. Other improvements were initiated by United, Pan American and TWA to improve the flow, disposition and treatment of industrial waste water prior to reach- ing the treatment plant. Airside construction was highlighted by installation of new concrete aprons, high speed taxiway exits, and the initial stages of the Runway 28R extension which is scheduled for Category III operation by 1975. These, along with routine runway overlay and upkeep projects, combined to make a busy summer for Operations, which must coordinate construction while overseeing approximately 1,000 aircraft movements per month. In line with ever-increasing pressures to include environmental safeguards in all facets of Airpoit operations, the Airport initiated more stringent policies, operating procedures, rules and regulations concerning the treatment of industrial and sanitary waste. The measures implemented this fiscal year represent a majot step forward to develop a master system, meeting present stringent State requirements and providing increased capacity. When completed in 1 975, Airport capital cost outlay for this program will reach $1 5 million. In closing, it is appropriate to express my sincere appreciation for the continuing cooperation of City and County -^flfettfe^ officials, the Federal Aviation Administration, the scheduled airlines serving San Francisco International Auport H B Wf and all others who help us provide the vital Airport services needed by the Gateway to the Pacific. Hi nM y We look forward to the challenges of the forthcoming year, William j. dJvyer Director of Airports AIRPORT STAFF OPERATIONS AND MAINTENANCE MAINTENANCE M. F. Bagan Deputy Director /Operations and Maintenance OPERATIONS Gerald F. Raye - Head Airport Electrician John R. Stain ton - Airport Mechanical Maintenance Supervisor David H. Matlock - Assistant Deputy Director Maintenance George N. Nessel - Airport Maintenance Superintendent Alvin L. Benas - Sewage Treatment Plant Superintendent Silvio J. Tringali - Superintendent of Operations, John S. Mullin - Communications Supervisor, Roy S. Samuels - Assistant Deputy Director/Operations, Steven J. Misera - Custodial Supervisor. SECURITY Chief Robert E. Clancy FIRE RESCUE Lt. Philip A. Meginness, Lt. Palmer L. Bass, Chief Edward J. Nevin, Lt. Columbus Sims and Lt. Robert M. Bom ben. Captain Frank Drago, Captain William Murphy and Captain William McGee. 3 1223 06354 4564 AIR TRAFFIC Air passenger volume and air freight shipments again established record highs during the year. Passenger traffic totaling 16,205,150 represented a 10.5 percent gain over Fiscal Year 1971-72 and topped the previous record high of 14,664,191 established last year by over 1 .5 million. The upward trend in air passenger flow resumed in October 1971. All-time highs have been recorded for the past twelve months. The daily average air passenger volume approached 45,000 with daily peaks of approximately 65,000 during pre-Christmas travel. PASSENGER FLOW % Increase (Decrease) AIR FREIGHT Air freight shipments increased by 8.1 percent, reaching a record high of 673,139,035 pounds and topping last year's record of 622,651 ,024 pounds by over 50.4 million pounds. AIR FREIGHT % Incrsas* (Decrease) 66,534,120 Millions of Pounds i 281,854,464 448.379.048 687.189.214 622 651.025 873.139.035 150 200 250 300 350 400 450 500 550 600 650 700 20 1 10.7) 19.3 8 1 6 8 24 7 9 8 263 48 3 38 5 14 5 13 2 16.7 16 71 78 8 1 Air express volume for the year increas pounds. 3.3 percent to 18,1! U.S. Mail shipped by air declined. The 206,560,903 pound tr>Tfl! w.i percent less than last year. The decline is attributed in large pj^^^P^ lesser volume of military mail to Southeast Asia. AIRCRAFT MOVEMENTS Aircraft movements — arrivals and departures — totaled 359,857 for the year, an increase of 1.3 percent. Scheduled aircraft movements increased 3.1 percent, while general aviation classifications — nonscheduled carrier and itinerant air- craft — again declined. AIRPORT STAFF LANDING FEES 30.2% FISCAL DATA Fiscal Year 1972-73 operating revenues of $22,100,599 were more than adequate to defray all operations expenditures, debt service costs (bond interest and redemption) and San Mateo County taxes. Expenditures totaled $19,464,461, including debt service costs. The $2,636,138 surplus will be used to finance Airport improvements and betterments and to aid in financing the multi-million dollar program of expansion and development. Revenues for the fiscal year were 3.9 percent higher than 1971-72. Major items of income and comparisons with the previous year are: 1972-73 1971-72 Air Carrier Flight Operations Landing Fee Surcharge Rentals Concessions: Restaurant and Bar $ 979,352 Newsstands, Gifts and Sundries 815,356 Parking Garage and lots 3,842,276 Ground Transportation: Taxis Other Auto Rentals Hotel (Hilton Inn) Auto Service Stations 339,925 193,427 1 ,894,486 231,156 168,589 TOTALS Miscellaneous Other Income $ 3,921.408 2,018,444 4,156,720 TOTAL $ 8,464,567 1,210,122 2,329,338 $22,100,599 S 937,914 790,593 3,622,981 307,317 170,607 2,030,225 197,506 148,993 $ 3,746,057 2,003.274 4,079,396 $ 8,206,136 1 ,049,658 2,187,397 $21,271,916 Expenditures totaling $19,464,461 were up 12.8 percent for the'1972- 73 fiscal period. The increase was due primarily to greater operational costs, plus a 7.9 percent rise in taxes paid to San Mateo County. Major expenditures were: 1972-73 Salaries, Wages and Retirement $ 5,090,157 Fire/Rescue Division 912,743 Services — Other City Departments 439,724 Contractual Services, Material & Supplies 3,427,024 Bond Interest and Redemption 8,324,015 Taxes Paid to San Mateo County 473,696 Other 797,102 1971-72 $ 4,627,177 856,690 437,968 2,618,723 7,726,053 439,027 551 ,093 TOTAL $19,464,461 $17,256,731 STATISTICAL SUMMARY Revenues Expenditures Operations Debt Service Taxes Paid to San Mateo County TOTAL Book Value No. of Employees excluding Fire and Rescue Division Passenger Total U.S. Mail by Air (Lbs) Air Cargo (Freight and Express Lbs) Aircraft Movements 1972-73 $ 22,100,549 10,666,750 8,324,015 473,696 $ 19,464,461 $136,840,289 476 16,205.150 206,560,993 691,297,860 359,857 1971-72 $ 21,271,918 9,091,651 7,726,053 439,027 $ 17,256,731 $129,048,837 458 14,664,191 234,769,081 638,680,604 355,413 AIRPORT STAFF PLANNING, ENGINEERING AND CONSTRUCTION Robert G. Lee - Chief Engineer Joseph H. New - Construction Engineer Dale H. Fearn - Assistant Deputy Director/Planning Thomas G. Bertken Deputy Director/Planning, Engineering and Construction U N I r m o m _4 l R North Terminal Foundation CONSTRUCTION Capital Improvement Program progress at San Francisco Inter- national Airport involved 39 projects valued at S21 ,769,759.03. Of these, 27 projects costing $12,100,144.03 were completed. The remaining 12 projects valued at $9, 669, 61 5 are scheduled for completion after June 30, 1973. Completion of the "Terminal Roads, East Underpass and Entrance Road Lighting" project together with future com- pletion of the "Upper Loop Road" project presently under construction will relieve auto congestion in the terminal areas. In addition to betterments, Central Terminal ramps between the ticket and baggage lobbies were carpeted in the initial im- plementation of Airports Commission policy to carpet all public areas in the terminals. Central Terminal building altera tions are also under way to construct the Airport Medical Clinic. Reconstruction and replacement of existing facilities ptovided a new section for the Force Main connecting the leimmal aiea to the Water Quality Control Plant, and also installed an asphaltic concrete overlay of the apron pavement serving several airlines between Piers C and D. Projects under way and scheduled for eaily completion include construction of Rotunda A ($4,003,494); Pilings and Founda tion for North Terminal (S3, 778, 614); and the previously mentioned Upper Loop Road ($847,500). Rotunda A will provide new terminal facilities tor three inter- national carriers. The North Terminal construction is the initial phase of a four story terminal building which provides the capability to handle increased passenger traffic providing an additional one half million square feet of terminal space. Under the Federal Airport Development Aid Program of 1970, SFIA has received $17.7 million assistance in 27 improvement projects costing $38.9 million. During this year under ADAP 4 and 5, 13 Airport improvement contracts valued over $8.8 million will receive 56.6% federal participation amounting to over $5 million. Big construction jobs are always a mess . . . and they seem to go on forever . . . But when they're finally completed, every- thing looks beautiful and everyone agrees it was worth it. We are presently in the process of an Airport development program which, during construction, will cause some inconvenience. Every precaution is taken to minimize the impact of construc- tion on the normal day-to-day operations. WATER POLLUTION CONTROL Completion of the new secondary treatment Water Quality Control Plant on the Airport permitted attention to be directed toward improving indus- trial wastes effluent to meet discharge requirements of the Regional Water Quality Control Board. An ongoing Water Pollution Quality Control Program consisting of periodic monitoring, sampling and inspection assists the Airport in meeting the stringent requirements of the Regional Quality Control regulations. INDUSTRIAL WASTE WATER Meeting the time schedule set by the Regional Water Quality Control Board, a study of the industrial waste program or requirements at SFIA was initiated in April 1973. The study will include recommendations for an overall Airport industrial waste collection and treatment system, along with the preliminary design and selection of a complete industrial waste treatment process. The final report with recommendations is expected to be submitted in September 1973. SUPPORTING CITY SAN FRANCISCO INTERNATIONAL AIRPORT SAN FRANCISCO INTERNATIONAL AIRPORT GROWTH. In 1966, in an effort to establish a base for future planning, the management of San Francisco International Airport undertook studies of then-current and anticipated air travel. Early predictions of 16 to 18 million air passengers annually were quickly and dramatically outdated with the advent of wide-bodied jets and an unprecedented growth in air travel. In short order a master plan was created, and implemented by the Office of Planning and Development, which was charged with the responsibility of developing a suitable expansion program. San Francisco Airport Architects, a joint venture of John Carl Warnecke & Associates and Dreyfuss & Blackford, was retained to develop the plan, and in 1968, was awarded a contract for architectural and engineering services for six satellite boarding areas, or "rotundas," a new North Terminal building, a South Terminal expansion, roads, utilities and support facilities. During the same period, beginning in 1967, the Association of Bay Area Governments (ABAG), through its Regional Airport System Study Committee, undertook an in-depth study seeking solutions to the proliferating problems facing Bay Area airports. Problems brought about by growth and by subse- quent strain on airport facilities. While conducting this searching study, the ABAG Committee diligently ex- plored every facet of airport problems. A principal concern was to find ways to minimize the impact which needed changes might have upon the environ- ment. Technical studies were conducted over a wide range of subjects, including access and capacity requirements, environmental and economic aspects and a number of special subjects dealing with interrelationships with other regions, vertical and short take-off and landing aircraft, and airport ownership. Many public hearings were held to elicit a solid and meaningful public reaction. The study resulted in a region-wide plan encompassing the entire San Francisco Bay Area. The EIR was also thoroughly aired in San Mateo County where the San Mateo Airport Land Use Committee held a public hearing on March 8 and the San Mateo Planning Commission held public hearings on March 28 and another on the Final Draft Report on June 27, 1973. On May 1, 1973, the Airports Commission met and passed a resolution certi- fying the completeness and adopting the Final Environmental Impact Report and forwarded it to the Board of Supervisors. Meanwhile, the Board of Supervisors had under preparation an ordinance on Environmental Quality pursuant to the State of California Guidelines imple- menting the California Environmental Quality Act of 1970. This ordi was passed by the Board of Supervisors on April 9, 1973. On May 17, 1973, a petition was filed in Superior Court challenging the validity of the Airports Commission action. Although the Airport Expansion - EIR was theoretically exempt from this ordinance, the City Attorney advised that in light of the pending couit action the Airport Expansion be submitted to the Department of City Planning in accordance with the new Environmental Quality ordinance. Thus, on June 4, 1972 the Board of Supervisors referred to the Department of City Planning the EIR for the Airport Expansion Program. The Department of City Planning, working with the Airport staff and con sultants, have completely revised the EIR and will publish the results by late July 1974 with public hearings by the Planning Commission in August and final acceptance in October 1974.